Energy Efficiency and Conservation Loan Program

Program 101

What does this program do?

The Energy Efficiency and Conservation Loan Program (EECLP) provides loans to finance energy efficiency and conservation projects for commercial, industrial, and residential consumers. With the EECLP, eligible utilities, including existing Rural Utilities Service borrowers can borrow money tied to Treasury rates of interest and re-lend the money to develop new and diverse energy service products within their service territories. For instance, borrowers could set up on-bill financing programs whereby customers in their service territories implement energy efficiency measures behind the meter and repay the loan to the distribution utility through their electric bills.

Who may apply?

Loans under the EECLP are available to those businesses (utility systems) that have direct or indirect responsibility for providing retail electric service to persons in a rural area. In general, a rural area for EECLP purposes is a town, or unincorporated area that has a population not greater than 20,000 inhabitants, and any area within a service area of a borrower for which a borrower has an outstanding loan. Eligible communities can be combined into service territories that exceed 20,000. In other words, the EECLP is available for an entity in the business of providing:

Retail electric service to consumers,

Wholesale electric supply to distribution entities, or

Transmission service to distribution or generation entities.

In each one of those cases, the entity providing the applicable service would do it with self-owned or controlled assets under a published tariff that the entity and any associated regulatory agency may adjust.

What are the terms of these loans?

The maximum term for loans under the EECLP is 15 years, unless the funding relates to ground-source loop investments or technology on an aggregate basis with a useful life greater than 15 years.

What is an eligible area?

The law requires the consideration of several factors to determine whether an area qualifies as rural for the purposes of this program.

Nearly every rural electric cooperative utility nationwide has some form of energy efficiency program as part of their strategy to manage power costs, meet consumer demand and increase environmental regulatory compliance. Encouraging energy conservation and the use of renewable resources of power have long been a part of the RUS Electric Program. The EECLP provides funds to expand efforts to help consumers save money, reduce the need to purchase or generate energy, reduce emissions from generation of electricity, and help strengthen rural economies through job creation for energy efficiency and conservation projects.

NOTE: Program details may change over time. Before you begin an application, please confirm you have the most current information by contacting a GFR who serves your area for assistance, or consult the program instructions listed in the section above titled "What Governs this Program?"